Buying farmland as non-farmer for investment/renewal of buidlings

Hi all. First post, non farmer so please bare with me a bit.

I have done up and sold multiple properties in the past, but I'm looking to make a more substantial investment and take advantage of ag IHT relief.

About 150 acres of land, 120 of which is farmland with two small houses is up for sale near me. Listed for 2mil, but price has already decreased once so I'm guess it will go for less.

I'm of the opinion the two houses could be renewed and sold for 400-500k each, or possibly let. They need a LOT of work though. However, the farmland is a tricky one for me. I'm in touch with one of the tenant farmers from the past who knows the current tenant farmer. Supposedly he has declined to make an offer on the property, not sure why. However, I'm under the impression he does still want to farm the land. There are also stables nearby that may be interested in grazing. The land is, I think, almost exclusively for grazing. About half of it is slope.

I appreciate how vague this post is, and needless to say a proper advisor would be consulted long before a full enquiry began, but I'm just looking for more of a hint from farmers in the know as to whether this broadly does, or doesn't sound like a good idea.

Thanks for your thoughts.

 

[serf]

take advantage of ag IHT relief.

So you just want to buy it to take advantage of APR relief .

Is the " tenant " a AHA tenant or yearly , doubt you'll get the IHT relief anyway if let on AHA .

And horses are not Agricultural for APR. ( BPR)

"Tenant" might be playing the long game ...

 

[bfreak]

So you just want to buy it to take advantage of IHT relief .

Is the " tenant " a AHA tenant or yearly , doubt you'll get the IHT relief anyway if let on AHA .

And horses are not Agricultural for APR.

No, the primary reason for the purchase would be to renew, and sell the houses with their own gardens.

Is the " tenant " a AHA tenant or yearly , doubt you'll get the IHT relief anyway if let on AHA .

As per gov website, my understanding is that ag relief is due at 100% if the land was used by someone else on a short-term grazing license. I can't find guidance to what 'short term' is though.

And horses are not Agricultural for APR.

Thanks, was unaware of this. Currently the land is cattle grazed anyway, it was just a possibility.

 

[Punch]

Location, location, location.
Land prices are varying a lot across the country.
How much have to to spend to make the houses worth £400-500k?
Land with a tenant is lower value. As @serf says check out the details and then take professional advice.

 

[Billboy1]

1st thing is check what tenancy he has the rest is area dependant